Steel Goods and Aluminum Goods Surtax Order, effective July 31, 2025
As of July 31, 2025, the Government of Canada imposed a 25% surtax on certain steel and aluminum goods imported into Canada that are melted and poured (for steel) or smelted and cast (for aluminum) in China.
Key Points:
The surtax applies to goods listed in the Schedule of the Surtax Order Steel Goods and Aluminum Goods Surtax Order
Goods are subject to a 25% surtax based on the value for duty, as defined in sections 47 to 55 of the Customs Act.
Affected goods include:
Steel goods containing steel that was melted and poured in China.
Aluminum goods containing aluminum that was smelted and cast in China.
Any goods listed in the Schedule of the Surtax Order with an origin other than China.
Definition and Proof Requirements:
Steel Goods: Considered to originate from China if:
any portion of the raw steel was initially produced and solidified there.
If the importer cannot provide proper documentation (e.g., a certificate, report, or commercial invoice) to prove otherwise, the goods will be deemed to contain Chinese steel.
Aluminum Goods: Deemed to be from China if:
The largest or second-largest volume of primary aluminum was produced in China, or
The aluminum was most recently liquified and cast into a solid form in China.
Importers must provide evidence (e.g., a certificate, report, or commercial invoice) showing otherwise. Failure to do so results in the surtax being applied.
Documentation:
Mill test certificates, mill test report or material test certificate; a certificate of conformance, compliance, inspection or analysis; a certified inspection report; a metallurgical test report; or a chemical analysis certificate.
As of September 22, 2025, commercial invoices alone will no longer be accepted. Only formal certificates or reports will be accepted to demonstrate country of melt/cast.
These documents may differ from those required to prove origin under trade agreements or tariff treatments.
Proof of Origin:
CBSA may request proof of origin under the Customs Act, using documents like a Canada Customs Invoice or other origin certificates.
These must comply with rules under trade agreements, or the MFN, or the General Tariff provisions.
Exceptions to the 25% Surtax on Chinese Steel and Aluminum:
The following categories of steel and aluminum goods are exempt from the 25% surtax introduced under the Steel Goods and Aluminum Goods Surtax Order:
Exemptions Include:
Goods in transit to Canada before the surtax takes effect, provided the importer can supply proof such as shipping or cargo documents.
Goods originating in the United States.
Where the total value for duty of surtax-applicable goods in a single Commercial Accounting Declaration (CAD) is $5,000 or less (excluding non-subject goods in the same CAD).
Goods already subject to the 2024 China Surtax Order (2024) – Steel and Aluminum
Casual goods, as defined under the Persons Authorized to Account for Casual Goods Regulations.
Goods imported under Chapter 98 of Canada's Customs Tariff, even if they would otherwise fall under surtax categories.
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